UK Interest Rate Held

UK Interest Rate Held.

The Bank of England (BoE) has decided to again hold interest rates at a historic low of 0.5% for another month, despite the continuation of economic improvements.

This was in line with expert predictions by economists.

The bond-buying stimulus also remained unchanged at £375bn.

This has led to a debate on when the rates will change as house prices continue to accelerate and the value of the pound rises, which hit its highest level against the dollar this week for the first time in five years.

The Organisation for Economic Co-operation and Development (OECD) issued a warning over fears that the housing market is rising to fast, pointing out that the government may need to restrict access to the Help to Buy scheme.

Recently the Help to Buy scheme has showed much success and has provided a big bonus to the government.

Comment

Same old same old.  Economic recovery is like a 'new born' foal, unstable.  Government needs property prices to rise.  Interest rates will remain the same until mid 2015 we are guessing.